You may know that I am not only a top REALTOR, but I am also a Real Estate investor. I enjoy collecting great rental properties. It is a business, and a hobby. Each one of my rentals I treat like a little baby! I take care of them, raise them up, improve them and provide them for great families to live in. You may also be realizing that the United States is unquestionably experiencing inflation right now. The causes of inflation are many and too detailed to explain here. However, the opportunities created by inflation, for an investor, are many. Think about this simple scenario: If you refinance your home now at 5%, or buy a rental property and get a loan at 6%, you can pay back that money at tomorrows dollar value.
What this means is this: Now is a GREAT time to have a loan! I am encouraging my own children to make sound investments now in hard assets, get loans, and pay them back when the dollar is worth considerably less. This is a strategy that can cause a QUANTUM LEAP in your wealth. Furthermore, I have never seen a more sure bet in my lifetime (that I was able to recognize).
So here is what I did last week. I purchase a home in the Stone Canyon area (Oakcreek) and I got a loan on it. I plan to pay off this loan in the next five years. My cash flow on this property will exceed $300 per month(after all expense)
Oakcreek Investment (Oaklands Drive)
My total cash to purchase this property was $500 out of pocket. Now I am going to do some minor repairs but my total out of pocket will be around $2,000 when all is said and done. I will make my entire investment back in less than 7 months. Plus, in five years from now I will pay the loan off with dollars that are worth much less. To pay it off I will cash out my other investments that will rise due to inflation.
NOTE: as a Real Estate Investor I like One Story Homes, that are between 1200 – 2000 square feet. I like 3 or four sides brick (if I can get it). This type of home is the “SWEET SPOT”, the low end of the high end so to speak! One story homes are the easiest to rent and the easiest to sell. The demand for one story homes rarely goes down no matter what the economy!
